- Major Swiss crypto bank, Sygnum, launches pioneer tokenized bank shares.
- Desygnate, the bank’s blockchain, was used to tokenize the shares.
Sygnum, one of the leading crypto firms in Switzerland, has announced the launch of the first-ever tokenized bank, shares the world has ever seen. According to available information, the shares were tokenized in anticipation of the public sale of the shares.
In the crypto bank’s press release, the shares were tokenized through Desygnate, which is the firm’s in-house blockchain platform. It was also revealed that Desygnate was developed to be compliant with regulations that would be guiding operations of blockchains in the Swiss country by 2021.
The blockchain platform would issue a digital copy of the shares on a distributed ledger. The legal rights and responsibilities guarding the shares would also be available on the ledger.
Sygnum’s tokenized share provides a different option to the traditional method of raising capitals by firms. Firms looking to sell their shares majorly depended on the initial public offering (IPO) method. However, with this development, they have a viable alternative that can be used to raise the desired capital too.
The crypto firm confirmed that its tokenized bank shares meet all legal requirements; it is efficient and that it offers a more inclusive alternative to the IPO method earlier stated.
Mathias Imbach, who is a co-founder of the bank and also doubles as its CEO said that the firm was pleased to be the pacesetter in tokenizing its shares. He went on to add that this development is in line with his firm’s goal of being more efficient when it comes to the creation of value and also giving direct access for ownership.
The bank has greatly reduced the need for it to manually update its registry because the process has been automated through the tokenization of its shares. This would greatly ease the process of owning the bank’s shares.
The digital shares would also limit the amount of time that would be spent on manually transferring shares between a buyer and a seller. In previous times, this process usually required the people involved in the transaction to fill a written form.